Charles Schwab 2014 Annual Report Download - page 84

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THE CHARLES SCHWAB CORPORATION
Notes to Consolidated Financial Statements
(Tabular Amounts in Millions, Except Per Share Data, Option Price Amounts, Ratios, or as Noted)
- 66 -
The maturities of securities available for sale and securities held to maturity at December 31, 2014, are as follows:
After 1 year After 5 years
Within through through After
1 year 5 years 10 years 10 years Total
Securities available for sale:
Asset-backed securities $ - $ 2,946 $ 5,062 $ 11,358 $ 19,366
U.S. agency mortgage-backed securities (1) - 1,281 5,196 12,240 18,717
Corporate debt securities 999 7,046 - - 8,045
U.S. agency notes - 3,795 - - 3,795
Treasury securities - 2,994 - - 2,994
Certificates of deposit 624 910 - - 1,534
N
on-agency commercial mortgage-backed
securities (1) - - - 317 317
Other securities - - - 15 15
Total fair value $ 1,623 $ 18,972 $ 10,258 $ 23,930 $ 54,783
Total amortized cost $ 1,621 $ 18,981 $ 10,168 $ 23,750 $ 54,520
Securities held to maturity:
U.S. agency mortgage-backed securities (1) $ -
$ 857
$ 15,618 $ 17,270 $ 33,745
N
on-agency commercial mortgage-backed
securities (1) -
- 359 639 998
Total fair value $ - $ 857
$ 15,977 $ 17,909 $ 34,743
Total amortized cost $ - $ 853
$ 15,789 $ 17,747 $ 34,389
(1) Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual
maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these
securities have the right to prepay their obligations.
Proceeds and gross realized gains and losses from sales of securities available for sale are as follows:
Year Ended December 31, 2014 2013 2012
Proceeds $ 6,556 $ 6,167 $ 3,336
Gross realized gains $ 30 $ 7 $ 35
Gross realized losses $ 23 $ - $ -
6. Loans to Banking Clients and Related Allowance for Loan Losses
The composition of loans to banking clients by loan segment is as follows:
December 31, 2014 2013
Residential real estate mortgages $ 8,127 $ 8,006
Home equity loans and lines of credit 2,955 3,041
Personal loans secured by securities 2,320 1,384
Other 39 36
Total loans to banking clients (1)
13,441 12,467
Allowance for loan losses (42) (48)
Total loans to banking clients – net $ 13,399 $ 12,419
(1) Loans are evaluated for impairment by loan segment.
The Company has commitments to extend credit related to unused HELOCs, personal loans secured by securities, and other
lines of credit, which totaled $6.7 billion and $5.7 billion at December 31, 2014 and 2013, respectively. All personal loans
were fully collateralized by securities with fair values in excess of borrowings at December 31, 2014 and 2013.